As input costs surge in Canada and modern farm operations diversify, traditional insurance models are struggling to keep up. According to Warren Ting, Vice-President of Underwriting at HTM Insurance, today’s farms require insurance solutions that go beyond just the balance sheet.
“We really need to dig deeper. It’s not just about the balance sheet,” Ting explained. “You’ve got to understand how the farmer manages risk, how they’re investing in safety, and how they adapt – whether that’s with side ventures, new crops, or operational efficiencies.”
Farming Risks Are Rapidly Changing
Farmers in Canada are no longer operating within one clear model. In fact, Ting notes that many are pivoting quickly, sometimes changing crops mid-season or launching entirely new ventures outside their original insurance coverage.
“That’s a completely different risk profile,” he said. “And many are going beyond crops altogether – opening farm shops, launching agritourism, renting out space.”
This evolution blurs the line between agricultural and commercial insurance. Ting pointed out that farms are now renting land for trailer parking, campgrounds, and other non-traditional uses.
Because of this, he explained, “You can’t always split these risks neatly into separate policies – they overlap.”
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Mutual Insurance Carriers Have an Advantage — If They Adapt
HTM Insurance operates as a mutual insurer, and that local, relationship-based model gives it a unique edge. However, Ting warns that legacy alone isn’t enough.
“We evolved to serve farmers when major carriers didn’t understand what they were doing,” he said. “That legacy matters. But it’s only valuable if we continue adapting alongside them.”
Many Canadian farmers are moving into solar power, conservation programs, and secondary income sources. If mutuals want to stay relevant, they must move just as fast.
Additionally, Ting cautions against simply raising premiums in response to increased risk.
“Sure, hiking rates is easy. But it’s not sustainable. Mutuals need to act as advisors, not just respond to renewals or claims.”
Smarter Farm Insurance with Flexible, Seasonal Coverage in Canada
Ting argues that usage-based insurance, much like what’s available in auto coverage, is the future for modern farm protection. Seasonal or diversified operations call for coverage that adjusts accordingly.
“If they’re not farming in winter, what else are they doing? We should have coverage that matches that reality,” he said.
To that end, HTM Insurance is already rewarding farms that invest in smart technology. Discounts are available for those using tools like aerial imaging, electrical monitors, and sensor-based systems that prevent loss.
“There should be incentives for proactive maintenance. If a client is using tech that prevents losses, we want to reflect that in the premium,” Ting emphasized.
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Climate Change Threatens the Insurance Model
Beyond technology and diversification, Ting sees climate change as the most significant long-term threat to farm insurance in Canada. Wildfires, floods, and extreme storms are no longer rare occurrences.
“It’s not if Northern Ontario or parts of Quebec burn – it’s when, and how bad it gets,” he warned.
The increasing frequency of severe weather events undermines the actuarial assumptions insurers rely on. For mutuals, which don’t have shareholder capital to fall back on, repeated losses could prove unsustainable.
The Case for National Risk-Sharing and Parametric Insurance
To protect the Canadian agriculture industry, Ting advocates for federal support and public-private risk-sharing tools. He recommends mechanisms like national risk pools and parametric insurance.
“Parametric insurance pays out based on storm intensity, not loss assessment. It speeds up recovery and provides certainty,” he explained. “Aviva just issued Canada’s first parametric policy. It’s a good start.”
He also believes in expanding tools like earthquake pools and agricultural risk pools, which could protect mutuals from being overwhelmed by consecutive climate-related claims.
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A Shared Responsibility to Protect Canadian Farms
Ultimately, Ting believes that insuring Canadian farms isn’t just about today’s bottom line—it’s about safeguarding the future of Canadian agriculture.
“We’re not just insuring this year’s crop,” he concluded. “We’re trying to protect the next generation of Canadian farmers.”
